IRS 3520 and property sale

[kman9]

I will be filing IRS 3520 form for the property I was gifted by my parents in a foreign country in 2023.
However I am planning to sell this property this year (2024) and bring the money to the US.
Where do I show this income so it is not taxed ?

[SusanY1]

You will report the inheritance this year, as you indicated, on the Form 3520 which is filed by mail to the Odgen, Utah office of the IRS. 

When you sell the property you have a potential for capital gains income (or loss) which will be the selling price of the property less applicable expenses and the basis in the property (which in your case should be the value on the date of the inheritance.)   For many properties sold shortly after inheritance, this results in a deductible loss, not a gain, but that isn't always the case. 

The deposit of income into your foreign bank account won't be considered income, and neither will any eventual transfer of those assets to the United States.  Just be sure to file the FBAR/FinCEN114 and 8938 in each year that you have assets that meet the then-current thresholds for those assets.